A Southern California-based nonprofit CEO pleaded guilty Monday to fraudulently applying for millions of dollars in COVID-19 jobless benefits, using stolen identities to steal nearly $1.5 million, officials say.
According to the Department of Justice, Reginald Foster Jr., 38, of Westchester, Los Angeles, admitted to one count of conspiracy to commit mail fraud and bank fraud and one count of unauthorized use of access devices.
The indictment alleges Foster took advantage of the federal Pandemic Unemployment Assistance program, part of the CARES Act passed in 2020 to help people impacted by the COVID-19 pandemic.
Foster allegedly exploited the Pandemic Unemployment Assistance (PUA) provision of the CARES Act, which is designed to expand access to unemployment benefits to self-employed workers, independent contractors, and others who would not otherwise have been eligible because of the COVID-19 pandemic.
The indictment alleged Foster submitted multiple applications for benefits with false information that ensured that the applications would be approved and the debit cards through which the benefits were dispersed would be sent to a mailing address he used. Prosecutors argue that 118 fraudulent applications were submitted as part of the scheme.
Foster then allegedly used the cards to take possession of the fraudulently obtained benefits through transfers to his non-profit, Champs Up! LLC, and $1,000 withdrawals at ATMs. The indictment alleges that Foster then transferred the cards to co-conspirators, who used them to make further ATM withdrawals. Foster and his co-conspirators were able to withdraw almost $1.5 million of the benefits. The benefits were frozen as soon as the scheme was uncovered, preventing further losses of more than $4 million.
Two alleged co-conspirators are also charged in the indictment: Shelece Counts, 31, of the Westlake neighborhood of Los Angeles; and Isaiah Herbert Lawrence, 30, of Houston, Texas.
